Computerized maintenance management software (CMMS) and enterprise asset management (EAM) software are both used to track assets and maintenance activities.
Many companies begin their automation journey with CMMS software, migrating their maintenance plans from spreadsheets to automated workflows. But as the needs of their enterprise grow, they realize they need a more robust EAM software solution.
Here are nine signs it’s time for your organization to make the switch from CMMS to EAM software.
9 signs you’re ready for EAM software
1. The number of assets you manage has increased
The number of assets you manage can increase because you just acquired another company or expanded your reach to open new facilities. When you go from one to many, your asset count shoots up.
At this point, your focus shifts from daily maintenance activities to managing assets in a more holistic, strategic manner.
Metro Group, a metal recycling and transloading company that has grown into a multi-million-dollar business with six locations and multiple subsidiaries, is a prime example of this. Using EAM software, they were able to successfully manage 345 assets across their broad range of services.
2. There’s an internal tug-of-war over resources
Many teams experience conflict over equipment and parts, which is stressful and inefficient. EAM software helps you gain real-time visibility into assets with accurate tracking of who is using them and when they will become available for another team. This results in more productive conversations between teams along with better accountability and ownership.
In a Dodge Data & Analytics study on the construction industry, 91% of contractors and owners agreed that increased collaboration reduces risk on construction projects. As an integrated software solution, EAM helps to connect the dots and create a collaborative environment.
3. You have to report on complex business data
Collecting and reporting on metrics may not have been in your initial job description, but your role has evolved. For example, a maintenance manager may need to report on total maintenance costs and how often equipment was serviced during a certain period. A senior executive may want to review the total cost of ownership (TCO) of a group of assets within a facility or see an annual reduction in equipment downtime.
While reporting on maintenance related metrics such as mean time between failure and mean time to repair is possible with a CMMS, EAM software is more beneficial for understanding big-picture, strategic metrics such as asset life cycle and TCO.
Using EAM software across your organization also ensures all your departments and locations are using a single source of truth for business intelligence.
4. You have to comply with changing industry regulations
Your industry may be bound by strict government regulations that require extensive documentation of asset maintenance. Heavy equipment industries, such as manufacturing and construction, need to comply with OSHA, ANSI safety codes and state regulations in the U.S. If they fail to comply, there are heavy penalties at stake. This calls for frequent inspections and checks on equipment, which you can schedule and monitor using an enterprise asset management solution.
To add to this challenge, industry standards keep changing as well. FASB recently changed its lease accounting standards, asking companies to start reporting operating leases in their financial statements. Without an asset management solution, it’s difficult to calculate such complex data that overlaps many departments and functions.
5. You want to make better purchasing decisions
CMMS software is great for companies who want software with a focus on maintenance-related activities. But if you want to monitor and improve the end-to-end asset life cycle, you need EAM software.
EAM can help you make better purchasing decisions by answering questions such as:
- Which kind of assets provide the best return on investment?
- Which assets have a long life cycle?
- Do I need to get an extended warranty?
- Which vendors provide useful documentation to support equipment inspections?
Not only does EAM software track asset data throughout its life cycle; it also allows you to integrate work orders with inventory and procurement. This enables you to continually improve your purchasing decisions.
6. You know you could be getting more from your preventive maintenance
Computerized maintenance management software can help you shift from reactive to preventive maintenance. But if you want to adopt a truly optimized preventive approach, enterprise asset management is the way to go.
While a good preventive maintenance program offers many benefits, enhancing your organizational processes means you gain maximize the benefits of your proactive asset maintenance approach. And, when integrated IoT sensors, you can begin to gather real-time performance insights to compare with your historical data from EAM software, preparing you for predictive modeling of future scenarios.
7. You want to be a part of the fourth industrial revolution
The fourth industrial revolution, or Industry 4.0, has ushered in an era of interconnected cyber-physical systems. This revolution has introduced us to many interesting digital technologies such as IoT sensors, data analytics, autonomous robots, and 3-D printing.
If you want a ‘smart’ enterprise, a robust asset management solution is the foundation.
IoT sensors embedded in your manufacturing equipment can relay real-time asset intelligence to your EAM system. You can then use those insights to improve asset performance.
8. You want to improve energy efficiency at your sites
Every company wants to save energy, but when energy savings shifts from a nice-to-have benefit to a major focus for management, you know it’s time to upgrade to enterprise asset management software.
With EAM software, you can integrate your energy conservation and asset maintenance strategies. You can take your high-level energy strategy and apply it to individual assets. For example, using condition-based monitoring, you can fine-tune your HVAC equipment according to the occupant density on your floor.
EAM can also offer deeper insights. Research conducted at the Wright-Patterson Air Force Base found that the amount of energy used to meet heating load requirements was much greater than the amount used to meet cooling load requirements. Such findings can help facility managers plan their energy initiatives accordingly.
9. Your supply chain is getting too complex to handle
EAM software plays a significant role in supply chain digitization. When there are many players in your business model, you are faced with the challenges of data transparency and operational efficiency.
For example, fleet management and logistics is an industry with a complex supply chain. You need a fleet maintenance software system that tracks every vehicle on the road, consolidates data from multiple entities and helps you identify patterns that improve efficiency.
Enterprise asset management solutions give you the visibility you need in the form of powerful dashboards. For instance, a transportation, logistics, and materials handling company was able to save $250,000 with our EAM solution.
Why it’s time to upgrade to EAM software
If you can identify with any of these challenges, you know you’re ready to upgrade from a CMMS to EAM software. These issues are only going to get more complicated and expensive the longer you wait. By contrast, investing in the right EAM software often has an immediate return on investment. It saves significant hours for your team and allows you to see exactly how much you’re spending on repairs so you can maximize your maintenance budget.
See why leading companies are making the switch to our lightning-fast, cloud-based enterprise asset management software. Schedule a free live demo.